More Americans say they are feeling more confident about their retirement. That’s according to the results of the latest “Retirement Confidence Survey” conducted each year by the non-profit Employee Benefit Research Institute (EBRI). The Washington-based EBRI is the leading source for data on savings, retirement, health and related issues.
In their 2015 survey, some 37% of all respondents said they feel “very confident” about their retirement, and another 33% said they feel “somewhat confident.” The problem is that many Americans ‘say’ they are confident about having enough money to retire, even though they have nowhere near enough money stashed away. Many people overstate the amount of retirement savings they actually have and under-estimate how much money they will actually need in retirement.
As we drill deeper into the latest retirement survey, we find that overall only 22% of current workers are now very confident about having enough money for a comfortable retirement. The 2015 survey also revealed that workers with a company-sponsored retirement plan are more than twice as likely as those without a retirement plan to be very confident – 28% with a plan, as compared to only 12% without a plan.
I'll summarize the main findings in the latest EBRI retirement survey as we go along today. Following that discussion, I am compelled to criticize what I consider to be some of the worst investment advice I have seen in my 38 years in this business. The advice came in the form of a controversial video that was posted on a popular website last week.
It was quickly criticized by a number of respected financial writers, mainly because the author, James Altucher, argued that investors and savers, especially younger ones, should avoid and/or abandon their employers’ 401(k) plans. He makes several erroneous statements about 401(k)s and their sponsors that many of us in the financial industry vehemently disagree with. So along with others who quickly discredited the video, I will criticize Mr. Altucher today. I hope no one takes his advice seriously!